Institutions of International Finance
A tentative recovery in 2021 has been followed by increasingly gloomy developments in 2022 as risks began to materialize. Global output contracted in the second quarter of this year, owing to downturns in China and Russia, while US consumer spending undershot expectations. Several shocks have hit a world economy already weakened by the pandemic: higher-than-expected inflation worldwide – especially in the United States and major European economies – triggering tighter financial conditions; a worse-than-anticipated slowdown in China, reflecting COVID-19 outbreaks and lockdowns; and further negative spillovers from the war in Ukraine.
In the context of discussing the impact of institutions on international finance:
First, discuss why international finance and its financial institutions are essential infrastructure in the facilitation of global commerce.
Then, discuss the impacts of modernized digital platforms and networks that are accelerating digitization of transactions across the globe?
Next, discuss the hurdles small and medium sized enterprises (SMEs) face in accessing financing on affordable terms and the reason(s) this is of particular concern.
Lastly, give one example from a recent news article.
Your answer should rely heavily on the sources provided (the document attached and the following online source):
https://www.tradecommissioner.gc.ca/development-developpement/mdb-overview-bmd-apercu.aspx?lang=eng
